MACD - Technical Analysis from A to Z
The MACD (Moving Average Convergence/Divergence) is a trend following momentum indicator that shows the relationship
between two moving averages of prices. The MACD is the difference between a 26-day and 12-day exponential moving
average. A 9-day exponential moving average, called the "signal" line is plotted on top of the MACD
to show buy/sell opportunities. The MACD proves most effective in wide-swinging trading markets. There are three
popular ways to use the MACD: crossovers, overbought/oversold conditions, and divergences.